Amphenol Corporation (APH)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,169,500 | 2,911,500 | 2,754,700 | 2,682,000 | 2,576,800 | 2,547,100 | 2,564,200 | 2,585,600 | 2,581,300 | 2,515,400 | 2,411,600 | 2,241,100 | 2,115,400 | 2,000,600 | 1,898,500 | 1,777,400 | 1,632,000 | 1,575,400 | 1,503,300 | 1,544,500 |
| Interest expense (ttm) | US$ in thousands | 217,000 | 185,100 | 163,000 | 141,700 | 139,500 | 141,600 | 140,800 | 136,300 | 128,500 | 120,200 | 116,400 | 115,000 | 115,500 | 115,000 | 114,000 | 115,100 | 115,300 | 115,100 | 116,800 | 116,600 |
| Interest coverage | 14.61 | 15.73 | 16.90 | 18.93 | 18.47 | 17.99 | 18.21 | 18.97 | 20.09 | 20.93 | 20.72 | 19.49 | 18.32 | 17.40 | 16.65 | 15.44 | 14.15 | 13.69 | 12.87 | 13.25 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,169,500K ÷ $217,000K
= 14.61
The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio signifies that the company is more capable of meeting its interest payments.
Analyzing the interest coverage of Amphenol Corporation from March 31, 2020, to December 31, 2024, we observe a generally increasing trend. The ratio has shown steady growth from 13.25 on March 31, 2020, to a peak of 20.93 on September 30, 2022. This upward trend indicates the company's improving ability to cover interest expenses.
However, from December 31, 2022, to December 31, 2024, the interest coverage ratio fluctuated, with a slight decrease to 14.61 by the end of 2024. This drop in the ratio may suggest a potential decline in the company's ability to cover interest payments or that there was a change in the company's interest expense relative to its operating income.
Overall, it is important for investors and stakeholders to monitor Amphenol Corporation's interest coverage ratio closely to ensure the company can meet its interest obligations and sustain its financial health.